OEM

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OEM

OEM

(Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and resells them. However, the reseller is often the designer of the equipment, which is made to order. Many of the largest PC vendors are OEMs, including HP, Dell and Lenovo. Essentially, any PC company that does not have its own manufacturing facilities is an OEM.

Added Value or None
The OEM often does not add anything to the equipment and merely brands it with its own logo. The OEM's name is either placed on the devices by the contract manufacturer that makes the equipment or by the OEM itself. However, OEMs may indeed add value. For example, a "value added reseller" will purchase a computer, add its own software and/or hardware and sell it as a turnkey system. See VAR and turnkey system.

There are numerous companies that specialize in OEM manufacturing and never sell anything under their own brand (see contract manufacturer). Many companies do both. They manufacture and sell retail, but also have a separate OEM division for goods that are private labeled.
References in periodicals archive ?
Those extra virtues and services are what set up a private label program for success and thus, helps a grocer create a differentiator.
While a year ago, only France saw private label sales decreasing, this year, France, Italy, Spain and the Netherlands have all seen a slowdown and even a decrease in private label share.
In the SA market, 78 percent of the product categories studied by Nielsen included private labels.
The climate is favorable for sales of private label products because the Philippines is a very price-sensitive consumer market.
The grocery channel owns the largest share of total private label consumer packaged goods sales.
Leading the way in the external store brand sanitary market - according to the Private Label survey - are maxi pads, with 43% of private label sales.
Dooner: So would you lean more toward private label and low-cost value or premium?
Share Trends: Penetration continues to be a key influencer of private label share.
As the modern retail channel develops, B brand operators in particular are vulnerable to the expansion of private label ranges; both compete against A brands on price.
One increasingly popular marketing approach is the growing emphasis on private label products.

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